The Federal Reserve's expected move to scale back monetary stimulus signals that the U.S. economy is gaining traction, but some economists argue that the good growth story is precisely why things look bad for the dollar and bond markets.
"The biggest threat we are facing might be economic growth," Axel Merk, chief investment officer at Merk Investments, told CNBC. "Every time we've had good economic indicators in the U.S. pop up, bonds have fallen pretty sharply."
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And if growth kicks into high gear, governments will need to pay higher interest on their debt, which would be negative for dollar and debt, he added.
"Bonds are going to fall off the cliff because government deficits are going to be very difficult to sustain," he noted. While central banks such as the Fed and the Bank of Japan may step in to put a lid on yields, currencies will suffer, he added.